LearMEX:LEA 84 Return-on-Tangible-Equity is 21.00% as of Mar. 2026, which is 18% above its 10-year median of 17.78. GuruFocus rates MEX:LEA with a GF Score™ of 84/100 and a GF Value™ of MXN2,038.51. The stock has 5 warning signs investors should review. Among 1,285 Vehicles & Parts companies, Lear ranks better than 78.13% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Lear's annualized net income for the quarter that ended in Mar. 2026 was MXN12,428 Mil. Lear's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN59,176 Mil. Therefore, Lear's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 21.00%.
The historical rank and industry rank for Lear's Return-on-Tangible-Equity or its related term are showing as below:
MEX:LEA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.71 Med: 17.78 Max: 66.44
Current: 16.34
During the past 13 years, Lear's highest Return-on-Tangible-Equity was 66.44%. The lowest was 5.71%. And the median was 17.78%.
MEX:LEA's Return-on-Tangible-Equity is ranked better than 78.13% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.51
vs MEX:LEA: 16.34
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Lear Return-on-Tangible-Equity Related Terms
Lear Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lear's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:LEA vs LKQ, MBLY, GTX: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, Lear's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lear Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lear's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lear's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 21.00% mean?
Lear (MEX:LEA) has a Return-on-Tangible-Equity of 21.00% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lear and its competitors. This is 18% above median its historical median of 17.78. Over the past decade, Lear's Return-on-Tangible-Equity has ranged from 5.71 to 66.44. According to the industry distribution chart, Lear ranks #281 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 21.9%.
Is Lear's Return-on-Tangible-Equity too high?
Lear's current Return-on-Tangible-Equity of 21.00% is 18% above median its 10-year median of 17.78. Over the past 10 years, this metric has ranged from a low of 5.71 to a high of 66.44. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.51. Lear's value of 21.00% is 179.6% above this industry median. Based on the distribution chart, Lear ranks #281 out of 1285 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Lear has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Lear's Return-on-Tangible-Equity compare to LKQ and MBLY?
According to the Vehicles & Parts industry distribution chart, Lear ranks #281 out of 1285 companies for Return-on-Tangible-Equity. This places Lear in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.51. Lear's value of 21.00% is 179.6% above this benchmark. Historically, Lear's own Return-on-Tangible-Equity has ranged from 5.71 to 66.44 over the past decade. While the company's 10-year median is 17.78 vs. the industry median of 7.51, Lear has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.51, based on 1,285 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lear's current Return-on-Tangible-Equity of 21.00% is 179.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lear and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lear's current Return-on-Tangible-Equity is 21.00%, which is 18% above median its own 10-year median of 17.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lear stock overvalued right now?
Lear (MEX:LEA) has a current Return-on-Tangible-Equity of 21.00%. The stock's GF Value™ is MXN2,038.51, compared to a current price of MXN2,120.00 — trading 4% above its estimated fair value. The current Return-on-Tangible-Equity is 21.00%, which is 18% above median its 10-year median of 17.78 and 179.6% above the Vehicles & Parts industry median of 7.51. Lear's overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Lear (MEX:LEA), the current Return-on-Tangible-Equity is 21.00% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lear (MEX:LEA) Overvalued in 2026?
Based on GuruFocus' analysis, Lear stock appears to be overvalued.
The current stock price of MXN2,120.00 is trading 4% above its estimated GF Value™ of MXN2,038.51.
Key valuation signals for MEX:LEA:
Return-on-Tangible-Equity: 21.00% (18% above median its 10-year median of 17.78)
GF Value™: MXN2,038.51 vs. price of MXN2,120.00 (4% above fair value)
Industry Position: 179.6% above the Vehicles & Parts median (#281 of 1285)
No single metric tells the full story. See the MEX:LEA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lear Corp designs, develops, and manufactures automotive seating and electrical systems and components. The company has two reporting segments Seating and E-Systems. Seating components include frames and mechanisms, covers (leather and woven fabric), seat heating and cooling, foam, and headrests. Automotive electrical distribution and connection systems and electronic systems include wiring harnesses, terminals and connectors, on-board battery chargers, high-voltage battery management systems. The company earns majority of its revenue from the seating segment.
84GF Score
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